Used reusable packaging sounds strange yet it is precisely how many CFO’s are improving the bottom-line. David Madden, President of ContainerExchanger.com, acknowledged that, “Initial investment in returnable packaging may cost more that one-time use packaging. However, savings are often quickly realized with returnable packaging because bulk containers, metal bins, and totes are used repeatedly and there are reduced labor costs with reduced or eliminated box assembly.” Additional cost-saving are realized through used reusable packaging including reduced material handling achieved with fewer moves from stackable containers, increased efficiency in floor space usage since plastic and metal containers can stack very high, and enhanced quality since there are fewer rejects due to damaged packaging.Used Plastic Reusable containers provide the most cost-efficient shipping approach possible; corrugated one-way packaging is the least effective and most costly. The quasi-e-Bay model of ContainerExchanger positively impacts both the buyer and seller of packaging. According to Madden, “When a company is finished using a returnable packaging fleet, we represent the seller and find a buyer for the used bulk packaging. Sellers enjoy a high sales price for a better return on investment. Buyers save significantly in comparison to new packaging prices.” The average price per trip for a corrugated one-way package is 54 cents versus a used plastic reusable container at 2 cents.
The per piece packaging costs for used bulk containers and totes can be as low as 5% of the costs for a comparable expendable solution, depending on shipping volumes. Returnable containers provide a way to reduce costs and increase productivity in handling and distribution because the containers can go from processors to distributors to retailers efficiently.Used pallets can take many different forms. Each pallet may be made from different materials and have different structural properties. There are plastic Export Pallets that are specifically made for the export market. These pallets are made from plastic, and therefore, they meet international shipping guidelines (while wood pallets must be heat treated before they are shipped internationally). Plastic pallets are often more durable than wood pallets, because they are generally all molded in one piece, while wood pallets require nails to hold all the pieces together.
Product handling is reduced with some of these returnable containers because produce is often packed directly into containers where it remains until purchased by the general public. Reduced handling eliminates product damage possibilities.
Increasingly manufacturers and distributors are changing entire storage and packaging components to returnable containers. Beyond the public relations benefit of being environmentally conscientious companies, genuine corporate citizenship is frequently sincere and demonstrated through practice. Madden insists, “Since used returnable containers enhance safety and quality issues, and are most cost efficient, it is not a difficult choice for many CFO’s to shift their packaging and storage approach.”
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If you’re ready to see some a positive impact on your bottom line result and can look at changing how you look at packaging, contact us today. We’ll work with you to buy or sell any new or used packaging, such as used pallets, used bulk containers, handheld totes, and carts. Visit us at http://www.containerexchanger.com today.